Govt. to pay for 20% cost of mega development projects under PPP model

New Delhi, Aug.19 (ANI): Union Urban Development Minister S. Jaipal Reddy on Wednesday said the government is ready to offer 20 percent of the cost of mega development projects if taken up as a public-private partnership (PPP).

Reddy said that in Mumbai some metro rail projects have been taken up as a private-public partnership and Hyderabad is also following suit.

The government is ready to encourage such gigantic projects so that they become commercially viable.

“In cases where such schemes are taken up, such gigantic schemes in PPP (Public Private Partnership) model we are giving 20 percent of the total cost of project by way of subsidies so that these mega projects can become commercially viable,” said Jaipal Reddy in the capital.

Reddy had earlier suggested an equity between the central and state governments, on the lines of the Delhi Metro model, which, in fact, had been considered and shelved earlier by the Mumbai Metropolitan Region Development Authority (MMRDA). (ANI)